While the governor touted the proposed Plan B deal as hard to beat, the Penguins apparently felt otherwise during a 90-minute meeting Thursday that broke off without an agreement.
According to sources, team representatives, including co-owner Ron Burkle, were stunned when state and local officials proposed that the Penguins share development rights and parking revenues with Mr. Barden, who was a surprise visitor to the negotiations.
The team saw the proposal as a worse deal than it would get under an extension available next year at Mellon Arena, one that would allow rent-free use of the building and give the franchise control over all building revenues, including parking.
In addition to sharing parking revenues and development rights, the state, city and county also want the team to pay rent at the new arena, in excess of the roughly $2 million a year it pays SMG at Mellon Arena, sources said.
Team officials saw the latest proposal as a setback after a "very positive" Jan. 4 meeting, they said. They were surprised to see Mr. Barden, who was invited by Mr. Rendell, and the proposals for sharing development rights and parking revenues. They also felt the overall plan represented a retreat from the previous session.